Only Portuguese-source income of Non-Residents are chargeable to tax. This
includes not only that portion of remuneration that can be allocated to the
activity carried out in Portugal but also remuneration that is borne by a
Portuguese company or permanent establishment (PE)

Extra Ordinary Rate

Taxable Income (EUR)

Tax Rate

20,261 to 40,522

0.88

40,522 to 80,640

2.75

80,640

3.21

Additional Solidarity Tax

- 2.5% to 5% for tax payers with taxable income exceeding EUR 80,000

Capital Gain Tax in Portugal

- 28% flat Rate on Gains of shares

Corporate / Company Income Tax Rate in Portugal for 2018

Taxable Income and Description

Tax Rate

Standard income tax rate on corporations

21%

SMEs on the first EUR of 15,000 (Amount exceeding EUR 15,000 tax is
21%)

17%

SMEs located in Portuguese inland region on the first EUR 15,000
(Over EUR 15000 21%)

12.5%

Companies that are tax resident in the Autonomous Region of Azores,
including PEs of foreign entities registered therein.

16.8%

Surtax in Portugal

The following surtaxes may also apply:

A local surtax (Derrama) of up to 1.5% of taxable income, prior to the deduction
of any available carry forward tax losses, is levied in certain municipalities.
The local surtax is assessed and paid when filing the CIT return.

A state surtax (Derrama Estadual) applies (prior to the deduction of any
available carry forward tax losses) at the following rates:

- 3% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR
7.5 million.- 5% applicable to the taxable profit exceeding EUR 7.5 million and up to EUR 35
million.- 7% applicable to the taxable profit exceeding EUR 35 million.

The state surtax is levied on resident taxpayers carrying on commercial,
industrial, or agricultural activity and by non-residents with a PE in Portugal.
The state surtax is paid in three installments.

A regional surtax (Derrama Regional) applies in the Autonomous Region of Madeira
on the same terms as the state surtax.